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Price gouging taxis under investigation

The Wānaka App

Sue Wards

05 January 2022, 3:00 AM

Price gouging taxis under investigationSome out of town taxis charged exorbitant prices. PHOTO: Supplied

New Year’s Eve has come and gone but some locals are still smarting from the inflated cost of out of town taxis during the busy holiday period.


Wānaka police are investigating a number of complaints about taxis overcharging customers at the end of their journeys, Sergeant Kim Chirnside said.



“These taxis are not from Wānaka and police stopped many of these operators to ensure they were within regulations.”


Some locals aired their grievances on social media this week, citing examples such as people being told they would be charged $30 but finding the next day they were charged an additional $100; someone was charged $100 to go from the Pembroke Park skatepark to Albert Town; someone was charged $230 from Wānaka to Glendhu Bay; and one group was charged $250 to go to Lake Hāwea. 


The taxis also sought fares between Wānaka and the Rhythm and Alps Festival in the Cardrona Valley, and people reported fares of between $250 and $400 from the festival into Wānaka.


A Wānaka resident posted on Facebook that they were charged $49.98 for a 1.6km trip.



“The driver said they came over from Queenstown and put their prices up for the two nights. First time not using a local company, won’t do it again. The local cabs do a great job, pity these scammers can come into town and rip us off.”


Wānaka’s Yello! Taxis owner Ramash Swamy told the Wānaka App he has noticed over the past few years that some taxi businesses target towns like Wānaka which host events during the summer.


Ramash Swamy of Yello!. PHOTO: Wānaka App


Yello! is a local company which has been operating for over ten years, Ramash said, and it has a set pricing structure for fares.


Wanataxi and KT Taxis are also local taxi businesses.


Ramash said he has no idea if the out of town taxis here during the New Year period were legitimate taxis, but said some taxis from Queenstown who came to Wānaka were “horrified with the prices” being charged by others.


“It’s been hard for everyone. Someone was told the driver’s boss had sent them there to make more money for the New Year,” Ramash said.



There were taxis in Wānaka that had come from Christchurch and Dunedin, and the name Golden Taxis came up on some people’s invoices, he said.


Legitimate taxis must have an operator’s licence; the driver needs to have an ID card; the vehicle has to have a COF; and the taxis must have a meter. 


Ramash said the price gouging was “absolutely gutting” for the local company.


“We’ve gone through two years of Covid and have lost a horrific amount of money. We were hoping to break even or make a little bit of money this year, and we don’t rip people off,” he said. 


“We’re just trying to be as fair as we can and survive.”


He said Yello! received multiple complaints about overpricing and had to tell people “sorry, it wasn’t our company”.


The police said investigations are ongoing relating to the overcharging.